Correlation Between Siam Cement and EDP -
Can any of the company-specific risk be diversified away by investing in both Siam Cement and EDP - at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Siam Cement and EDP - into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Siam Cement and EDP Energias, you can compare the effects of market volatilities on Siam Cement and EDP - and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Siam Cement with a short position of EDP -. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and EDP -.
Diversification Opportunities for Siam Cement and EDP -
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siam and EDP is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and EDP Energias in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDP Energias and Siam Cement is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Siam Cement are associated (or correlated) with EDP -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDP Energias has no effect on the direction of Siam Cement i.e., Siam Cement and EDP - go up and down completely randomly.
Pair Corralation between Siam Cement and EDP -
Assuming the 90 days horizon The Siam Cement is expected to generate 0.17 times more return on investment than EDP -. However, The Siam Cement is 6.02 times less risky than EDP -. It trades about -0.17 of its potential returns per unit of risk. EDP Energias is currently generating about -0.06 per unit of risk. If you would invest 500.00 in The Siam Cement on December 1, 2024 and sell it today you would lose (11.00) from holding The Siam Cement or give up 2.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 58.33% |
Values | Daily Returns |
The Siam Cement vs. EDP Energias
Performance |
Timeline |
Siam Cement |
EDP Energias |
Siam Cement and EDP - Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siam Cement and EDP -
The main advantage of trading using opposite Siam Cement and EDP - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, EDP - can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EDP - will offset losses from the drop in EDP -'s long position.Siam Cement vs. FTAI Infrastructure | Siam Cement vs. RCM Technologies | Siam Cement vs. NN Inc | Siam Cement vs. Tejon Ranch Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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